Depre123 Resources for Help with Depreciation Answers

Depre123 is a cloud based application to manage fixed assets and generate a variety of depreciation reports on any desktop or mobile device. Get all of your depreciation answers based on just 3 key values (cost, date, asset class) and then utilize the open design to add all necessary fixed asset detail.

Where do you turn when you have a question about fixed assets or depreciation? On the Depre123 Resources tab there are many answers:

depre123-resources-for-help

The Resources tab provides useful links to:

  • Latest information on Tax Regulations
  • Current Accounting News stories on our blog depreciationguru.com
  • Depre123 Overview will help to get an understanding of basic features
  • White paper “Calculating Depreciation in the Cloud”
  • Depre123 User’s Guide
  • Getting Started Guide for first time users
  • Email & phone number for technical support
  • A link for each individual state’s rules regarding depreciation

By linking to our active blog on fixed assets and depreciation, you will always have access to the most current news and information. We monitor top accounting sites, magazines and other news sources to keep up with any related content so you don’t have to.

The documentation links should be your first stop for any questions on the Depre123 application. If you can’t find the answer here then reach out to our support team by email or phone. For anyone that needs to calculate depreciation for more than one state, you will greatly appreciate the links to get the specific rules for every state.

Questions? Comments? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net or depre123.com. At Bassets register for our live webinar, download a free evaluation copy and get a personalized pricing estimate. At depre123 try out our Free Depreciation Calculator and check out our cloud based fixed assets application.

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De Minimis Expensing Rule for Immaterial Purchases

de minimis expensing ruleLast month we linked to an article on whether to expense or capitalize a purchase:

The 101 on Depreciation Expense and Fixed Assets

This article gives a basic overview of the key points, but we wanted to dive into the topic on a much deeper level. We are big fans of the CCH Tax Guides and always read their annual update to the U.S. Master Depreciation Guide from cover to cover. They do an excellent job of explaining the Tax and GAAP rules with lots of detail. We cannot link to the current 2013 guide, but some earlier versions are now available through the Google Books service:

2009 U.S. Master Depreciation Guide

This above link points to the Special Expensing Section (Code Sec. 179), Paragraph 307. This paragraph explains the De Minimis Expensing Rule and how it applies to writing off the cost of an asset. While some companies assume that they can expense all purchases under a determined threshold, the IRS says that “All property used in trade or business (except land and inventory) that has a useful life of more than one year must be capitalized and depreciated”.

So taxpayers are not permitted to treat fixed assets as current expenses simply because the particular item has a cost less than a certain minimum. If you are unsure of the rules, take the time to read these 5 pages of the depreciation guide. Obviously the 2013 Guide is the definitive source, but that is not accessible yet in Google books, so the 2009 Guide provides a very good starting point.

Questions? Comments? Let us know in the comments section below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

Tax Filing Becoming Even More Complicated

Tax Filing Mor ComplicatedAn article in the New York Times featured a report from an Internal Revenue Service taxpayer advocate calling for a tax overhaul due to the “significant, even unconscionable, burden” placed on taxpayers just to file a tax return.

In her legally required annual report to Congress, the national taxpayer advocate, Nina E. Olson, estimated that individuals and businesses spend about 6.1 billion hours a year complying with tax-filing requirements. That adds up to the equivalent of more than three million full-time workers, or more than the number of jobs on the entire federal government’s payroll.

And filing is only becoming more complicated as lawmakers haggle over new tax breaks.

Since 2001, Congress has made nearly 5,000 changes to the United States tax code, or more than one a day on average. Nine in 10 taxpayers now pay money, for professional preparers or often-expensive commercial tax software, to figure out how much money they owe the government.

One of the advocate’s suggestions for streamlining the tax code was to repeal the alternative minimum tax, a parallel tax system intended to make sure rich Americans pay a fair amount in taxes, which is increasingly engulfing middle-class taxpayers. Another was to reduce the number of income exclusions, deductions and credits, known collectively as “tax expenditures,” that clutter up the tax code.

Read Full Article Here http://www.nytimes.com/2013/01/09/business/irss-taxpayer-advocate-calls-for-a-tax-code-overhaul.html

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

 

 

 

Impact on Depreciation with American Taxpayer Relief Act

The American Taxpayer Relief Act of 2012 was finally passed by Congress and signed into law last week.  The business tax provisions contained in the bill are as follows:

  • 50% Bonus Depreciation has been extended through December 31, 2013
  • 50% Bonus Depreciation has been extended through December 31, 2014 for certain long production period and transportation assets
  • The 15 year recovery period has been extended from January 1, 2012 through December 31, 2013 for qualified:

Leasehold Improvement Property
Retail Improvement Property
Restaurant Property

  • Section 179 Expensing Election:

The maximum annual expense deduction for 2012 and 2013 has been increased to $500,000

The maximum annual investment limit for 2012 and 2013 has been increased to $2,000,000

For more information CCH has put together a Tax Briefing that covers the entirety of the American Taxpayer Relief Act of 2012 and is located at http://tax.cchgroup.com/downloads/files/pdfs/legislation/ATPR.pdf

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.

2012 New Capitalization Rules: Part 4 – Improvements to Leased Property

This is the last entry in our four part series covering tax law changes on depreciation for 2012. As we have indicated previously, these new regulations apply to any expenditure made on or after January 1, 2012. So far, we have covered Tangible Property, Materials & Supplies and the De Minimis Rule. Today’s topic is Improvements to Leased Property. Please note: we are only highlighting a few of the big issues. You can read the full list of updates to the U.S. Master Depreciation Guide 2012 from CCH

Updates to the U.S. Master Depreciation Guide 2012

 

Improvements to Leased Property

The new regulations state that a unit of property for a lessee consists of the leased part of the building and the structural components related to the leased portion. Additionally, if the lessee improves the leased portion then they must capitalize any expenditure.

The amounts that are not capitalized include any amounts received by the lessee for a construction allowance to make an improvement to the leased property that are excluded from income per IRS regulations. In addition, if the expenditure is considered in lieu of rent then any amounts spent by the lessee for an improvement to the leased property can not be capitalized.

These changes to dealing with materials and supplies can be confusing so refer to the CCH link above for complete details and examples. This concludes our series on the new capitalization rules.

Questions or comments about this post? We invite you to respond in the space below.

More information about Bassets eDepreciation software can be found at Bassets.net. While there you can set up a demonstration, download a free evaluation copy and get a personalized pricing estimate.